Good to see some green for a change .... Colour trend lines

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Derek  5 Apr 2018

Morning,

It is good to see some green for a change. The Trade War has done its damage, but seems to have been discounted now.

International:
Hongkong is closed today, but all indices are following the US positively.

The 200 day moving average acted again as a support. I show this for the S&P500 and notice that the previous turn also happened on this line. My red trend line and the EMA8 line were smashed with FrontRunner moving positively.



So where did the most money change hands? Amazon, Facebook and then Apple.
I show Apple that also smashed all resistance. Also to notice is how Apple touched my green support line 5 times.



JSE Technical:
Time to show Naspers again. This correction took Naspers all the way into a yellow Trend Factor. But yesterday it made the long leg hammer. It was at one stage -6.5% to close +2.6%. They say that no one will ring a bell when markets turn, but candles help to spot turns. Trend and EMA8 lines are not broken yet.



I do not want to close negatively today, but I must show you the divergence what started Sanlam's correction. FrontRunner and MACD gave divergence as shown against my strong resistance (thick red) line. It did go ex-divident yesterday that made the correction worse.



Technical Tips:
When I discussed colour lines previously, we had a glitch in the system, so I do it again. Notice how I now colour coded my support, resistance and trend lines. The more important (many touches) a line become, the thicker I make it. If you just look at Sanlam's graph again, you can visually see where strong support and resistance is.

If you want to see where the most money changed hands, just run Expert Analyses and click on the heading Volume*Close to sort it. I show this table for the JSE. You should notice that Sanlam is no 3 on the list where investors took their dividend and then sold. a Logic that I can never understand, then rather sell at top when divergence was in place.



Enjoy your day.
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